Brazil’s largest steelmaker Usinas Siderurgicas de Minas Gerais (Usiminas) has signed a power purchase agreement (PPA) with Canadian Solar for 50% of 381 MW Morada do Sol solar farm’s total energy production.
Under the deal, Canadian Solar will invest BR$1.35 billion (US$262 million) to develop and build a solar power plant in the Brazilian city of Luziânia, Goiás state. Construction is expected to commence in the first quarter of 2024, with commercial operations expected in January 2025.
Under the PPA agreement, Usiminas will receive an average of 30 MW over a 15-year period, effectively from 2025. The amount of energy can meet about 12% of the steelmaker’s total demand for electricity.
According to Canadian Solar, this is the first corporate PPA negotiated directly with an industrial customer under the Brazilian self-production system.
The Morada do Sol project will use Canadian Solar's high-efficiency bifacial BiHiKu modules, which are estimated to generate enough electricity to power about 432,700 households and offset 118,500 tonnes of carbon dioxide emissions once fully operational.
“While we are working toward our own ESG goals, we are also happy to cooperate with Usiminas in a bespoke solution in the Morada do Sol project to meet their energy cost reduction and ESG goals,” stated Shawn Qu, CEO of Canadian Solar.
“This deal further adds to our footprint and leadership position in the Brazilian market, demonstrating our capacity to continue to provide our clients with sustainable, economic, and innovative solutions in a country where we have developed over 4.1GW of projects,” Qu added.
Sergio Leite de Andrade, chief executive officer of Usiminas, remarked, “Usiminas is celebrating its 60th anniversary this year, and the firm is committed to ensuring the long-term viability of its activities. Initiatives like the cooperation with Canadian Solar for the delivery of solar energy to power our operations are critical steps in the company's quest to become more aligned with the ESG agenda's ideals.”
